Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Use this simulator( https://technology.councilforeconed.org/comparative-advantage/#/sliders/2) and apply the principle of comparative advantage to determine if two countries that produce cellphones and microwave ovens should specialize

1. Use this simulator( https://technology.councilforeconed.org/comparative-advantage/#/sliders/2) and apply the principle of comparative advantage to determine if two countries that produce cellphones and microwave ovens should specialize and trade. When a worker in a country can produce more of a good than a worker in another country, the worker in the first country has an absolute advantage in producing that good. Which country's workers have an absolute advantage in cellphones and microwave ovens? Briefly explain why. 2. Use this simulator (https://technology.councilforeconed.org/comparative-advantage/#/sliders/3) and answer the following questions. The United States and France produce many goods, including cheese and wheat. Which country has a comparative advantage in the production of wheat? If the United States decides to put all of its workers into the production of wheat, how many pounds of cheese would be lost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Michael Parkin

10th Edition

013485330X, 978-0134853307

More Books

Students also viewed these Economics questions

Question

Explain Milton Friedmans permanent income hypothesis.

Answered: 1 week ago